El Fouladh Publishes 2024 Financial Statements
El Fouladh has released its financial statements for the 2024 fiscal year. The public company reported a new loss (after accounting adjustments) of -69,215 MTND, which will be added to the carried-over results of -448,311 MTND. The company's equity before allocation is already at -451,666 MTND.
Revenue Down 22.2% Year-over-Year
The company achieved a turnover of 113,229 MTND, a decrease of 22.2% compared to the previous year. This decline is attributed to the 14% drop in iron prices since the end of 2023 and the decrease in sales of this product. The turnover generated by the sale of metal structures followed the same trend, decreasing by 9.1 MTND.
Operating Expenses Remain High
Operating expenses did not follow the same downward trend and stood at 140,553 MTND. This is partly due to the significant increase in depreciation and provision charges, which rose from 3,020 MTND at the end of 2023 to 12,850 MTND at the end of 2024.
Financial Charges Add to Difficulties
Financial charges add another layer of difficulty, totaling 43,062 MTND. As of the end of the year, El Fouladh had bank loans of 308,506 MTND. However, the company is struggling to repay its debts, including:
- 60.9 MTND in principal and 85.1 MTND in penalties to the CNSS (National Social Security Fund)
- 177 MTND to the STEG (Tunisian Company of Electricity and Gas)
- 10.7 MTND to AGIL Energy
The company is currently negotiating with its creditors to find solutions. It plans to resume payment of social security contributions from the first quarter of 2026 and has signed an agreement with the social security fund to pay off its debts without penalties over a period of 7 years. An agreement has also been finalized with AGIL Energy to pay off the debt on a monthly basis until August 2029, at a rate of 0.200 MTND.
Restructuring Project Offers Hope
El Fouladh is counting on its restructuring project, which includes the construction of a new factory financed by foreign funds and guaranteed by the state. The potential is significant, given the local market's needs, which are currently met by imports. Theoretically, El Fouladh is one of the public companies with the best chance of recovering from its current situation.
